NEW YORK, February 26, 2021 – Bank of Montreal (TSX:BMO)(NYSE:BMO) today
announced that it intends to redeem all of the outstanding Dorsey Wright MLP Index ETNs due
December 10, 2036 (the "Affected Securities"). The Affected Securities are listed on the Nasdaq
under the symbol “BMLP,” and have the CUSIP number 063679104. The pricing supplement
for the Affected Securities may be found at the following link:
Capitalized terms used but not defined herein will have the meanings set forth in the pricing
BMO will pay the Call Settlement Amount (as described below) to investors holding Affected
Securities on the Call Settlement Date, which is expected to be March 16, 2021.
The Call Settlement Amount payable on the Call Settlement Date will be calculated as specified
in the pricing supplement. The Call Settlement Amount will equal: (a) the product of (i) the
Reference Holder Value as of the Call Calculation Date multiplied by (ii) the Index Factor for
the last Index Business Day in the Call Measurement Period plus (b) the Coupon Amount with
respect to the Coupon Valuation Date immediately preceding the Call Calculation Date if on the
last Index Business Day in the Call Measurement Period the Coupon Ex-Date with respect to
such Coupon Amount has not yet occurred, plus (c) the Adjusted Coupon Amount, if any, minus
(d) the Accrued Tracking Fee as of such last Index Business Day plus (e) the Stub Reference
Distribution Amount, if any, as of such last Index Business Day.
The Call Calculation Date is expected to be March 5, 2021. The “Call Measurement Period” is
expected to consist of the five Index Business Days from March 5, 2021 to March 11, 2021.
The Affected Securities will be delisted from the Nasdaq prior to the open of trading on the Call
Holders of the Affected Securities may choose to continue to hold their securities until the Call
Settlement Date, or may choose to sell or redeem their Affected Securities prior to the Call
Settlement Date, in accordance with the terms of the Affected Securities. March 4, 2021, the last
scheduled Index Business Day prior to the Call Calculation Date, will be the last day on which
we will redeem any Affected Securities at the option of the holders. BMO has announced the
waiver of the minimum early redemption size for each of the Affected Securities. Prior to the
waiver, holders of the Affected Securities were required to redeem at least 50,000 ETNs at one
time in order to exercise their right to redeem them.
None of the other exchange traded notes that BMO has previously issued are affected by this
BMO does not intend to issue or register any additional Affected Securities on or after the date
of this press release. BMO and its affiliates also intend to suspend any further sales from
inventory of the Affected Securities on March 4, 2021. The market value of these securities may
be influenced by, among other things, supply and demand for the Affected Securities. It is
possible that the suspension of any further sales of the Affected Securities by BMO may
influence the market value of the Affected Securities and the liquidity of the market for the
Affected Securities, potentially leading to insufficient supply, and causing the Affected
Securities to trade at a premium above their closing or intraday indicative value. Any such
premium may subsequently decrease at any time and for any reason without warning, resulting in financial loss to investors who paid this premium when they acquired their Affected Securities.
Investors who purchase the Affected Securities at any time prior to the Call Settlement Date for
an amount that is greater than the Call Settlement Amount that they will receive on the Call
Settlement Date will suffer a loss on their investment. Furthermore, investors who sell the
Affected Securities at any time prior to delisting for an amount that is less than the Call
Settlement Amount they would have received on the Call Settlement Date will also suffer a loss.
In either case, such losses could be significant. Investors will not receive any other compensation or amount for the loss of the investment opportunity of holding the Affected Securities.
About BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly diversified financial services
provider - the 8th largest bank, by assets, in North America. With total assets of $973 billion as
of January 31, 2021, and a team of diverse and highly engaged employees, BMO provides a
broad range of personal and commercial banking, wealth management and investment banking
products and services to more than 12 million customers and conducts business through three
operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO
BMO Media Contact:
Kelly Hechler, Kelly.Hechler@bmo.com, (416) 867-3996
Bank of Montreal ETNs
Bank of Montreal, the issuer of the Affected Securities, has filed a registration statement
(including a pricing supplement, prospectus supplement and prospectus) with the SEC regarding
the Affected Securities. Please read those documents and the other documents relating to the
Affected Securities that Bank of Montreal has filed with the SEC for more complete information
about Bank of Montreal and the Affected Securities. These documents may be obtained without
cost by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Bank of Montreal,
and any agent or dealer that participated in the offering of the Affected Securities, will arrange to
send the pricing supplement, the prospectus supplement and the prospectus if so requested by
calling toll-free at 1-877-369-5412.